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U.S. Wind Energy Capacity
Though the wind sector of the
electricity market is small
today, it has gown quickly in
recent years. According to the
American Wind Energy
Association (AWEA), 5,244
megawatts (MW) of wind
energy capacity was installed in
2007. This was an increase of
over 45% in total energy
generation capacity compared to
2006. As shown in Chart 2,
wind energy generation capacity
has grown from only 10
megawatts in 1981 to over
16,800 megawatts in 2007.
This amount of energy serves
the equivalent of 4.5 million
average households. As shown
in the chart, the industry’s
recent high level of growth
began in approximately 1999.
The U.S. is second to only
Germany (22,300 MW) in total
wind energy production in the
world. As of May 2008, the
industry had continued to grow
to over 18,000 MW.
An average U.S. household uses about 10,655 kilowatt-hours (kWh) of electricity each
year. One megawatt of wind energy can generate from 2.4 to more than 3 million kWh
annually. Therefore, a megawatt of wind generates about as much electricity as 225 to
300 households use. The 18,000 MW of total wind energy in the country could supply
4.0 to 5.4 million households. It is important to note that since the wind does not blow
all of the time, it cannot be the only power source for that many households without
some form of storage system.
One factor that has greatly affected the amount of new wind energy capacity in recent
years is the federal Renewable Electricity Production Tax Credit (PTC) for wind
energy. This allows utility-scale wind turbine owners to take a 2 cent per kilowatt-hour
tax credit against their federal income taxes. This credit has significantly impacted the
development of new wind energy projects. As can be seen in Chart 2, in years
